Mortgage rates jump by 10% in June 2022
The Bank of England released average mortgage rates by Loan to Value (LTV) today
What they said
Average mortgage rate for 75% LTV 2-year fixed rates mortgages 2.88%
Average mortgage rate for 90% LTV 2-year fixed rates mortgages 3.18%
Average mortgage rate for 95% LTV 2-year fixed rates mortgages 3.50%
As we have commented before with Bank Rate rising it is inevitable that mortgage rates will follow suit. The average mortgage rates for popular mortgage products rose by around 10% in June and mortgage rates are likely to continue rising during the rest of the year.
The average mortgage rate for a 2-year fixed-rate 75% LTV mortgage has more than doubled over the last year from 1.39% in June 2021 to 2.88% in June 2022. However, although the mortgage rates for higher LTV mortgage products are also rising, at the 95% LTV level they are lower than they were one year ago: 3.50% in June 2022, but 3.74% in June 2021.
Our advice remains the same, if you are in a remortgaging window, we suggest that you speak to your mortgage adviser, with rates rising and very likely to rise further now might be a good time to lock in a low-interest rate for your next mortgage.
You can see the impact of changing mortgage rates on your mortgage payments by using our mortgage calculator.